Education loans are offered by several different types of lending organization. US government backed student loans can be obtained by visiting http://www.fafsa.ed.gov/. US government backed loans are favorable for two primary reasons:

1. They typically offer a below market interest rate.

2. Loan repayment is deferred until sometime after the student graduates.

The US government originally chartered Sallie Mae to provide federal student loans, however, legislation in 2009 required federal loans to come directly from the government. This transformed Sallie Mae into a private lending organization.

Explore all your options:

1. Compare prices: The less you need to borrow, the lower your monthly payment. While this may seem blatantly obvious, potential borrowers must perform a cost / benefit analysis to determine whether or not the cost of their education will be worth the benefits. For example, an expensive private college that will require significant debt may not be a good choice when compared to a state college with similar academic credentials.

2. Internal options: Look first to your school for funding options. Inquire about any scholarships or low interest rate loans that may be offered.

3. External options: Look into as many outside options as possible. While interest rate is the primary variable used to compare loans, look into any promotions or special offers such as low introductory rates.